India-UK trade deal takes effect, boosts exports

Pact opens duty-free access for nearly all Indian exports

TDT | Manama

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India's comprehensive Economic and Trade Agreement (CETA) with the United Kingdom came into effect yesterday, giving duty-free access to nearly all Indian exports to the UK.

Under the agreement, tariffs have been removed on around 99 per cent of tariff lines, covering almost the entire value of India's exports to the UK. The government said the deal is India's most comprehensive bilateral Free Trade Agreement (FTA) and is expected to boost exports, create jobs and strengthen trade between the two countries.

The agreement is expected to benefit small businesses, farmers, fishermen, women entrepreneurs, innovators and labour-intensive industries by making it easier to sell products in one of India's largest export markets.

In a statement, the Press Information Bureau (PIB) said the trade deal would create new business opportunities and support economic growth. It added that increased competition would help Indian manufacturers improve quality and meet international standards, while consumers would benefit from a wider choice of competitively priced goods.

Businesses are already preparing to expand exports under the new agreement. The gems and jewellery sector expects exports to the UK to grow by 230 per cent to $2.5 billion within the next three years. Engineering goods exports are also expected to nearly double to $7.5 billion over the next four to five years.

The agreement was signed last year by Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer after years of negotiations.

The government said the trade pact comes at a time when India's exports continue to grow despite global economic challenges. It is also expected to support the country's Viksit Bharat 2047 vision by increasing exports, attracting investment and strengthening economic ties between India and the UK.